Japanese Cross–border Investment

We believe that Japan is in stable recovery mode, and much better placed than most OECD countries to weather any slow down. M&A in Japan, although a relatively recent phenomena, has gathered pace of late.

Many transactions executed in the recent past by foreign funds were limited to distressed sales. Now that transactions via the IRCJ (the Government clearing house for corporate rehabilitation) have tapered off, the new dynamic will be how to transact in a Japan that no longer needs to deal on desperation terms. This has many funds, both large and small, lacking deal flow. Going forward, creatively is required.

The second wave of Japanese financial restructuring offers, both strategic and financial investors, historic opportunities through a combination of market presence and capital gain with limited downside risk.